Roll No. ...5\h.fS.)=

Total No. of Questions - 6

TimeAllowed-3Hours

Total No. of Prinred pages - 16

Maximum Marks --100

PMTSAhswers to questions are to be given only in English except in the,case of candidates who

have opted for Hindi Medium. If a candidate has not opted for Hindi Medium, his/trer

answers in Hindi will not be valued.

Question No. I is compulsory.

Candidates are also required to answer any four questions from the remaining five questions.

All questions should be answered on the basis of the position of GST law as

amended up to 30'04'2018 and Customs law as amended by the Finance Act,20l7and notificarions and circulars issued till

-30-0+201&The GST rates for goods and services mentioned in various questions are

hypothetical and may not necessarily be the actual rates leviable on those goods

and services. The rates of Customs duty are also hypbthetical and may not

nece.s s ar,r

H:il H: ;:H,,"i1";1ilff s s shou'1d be

Marks1' (a) IWs Jonty India Ltd. a manufacturer of heavy machines registered at l0

Jaipur (Rajasthan) supplied one machine to IWs. Dhanuka Ltd. ofudaipur (Rajasthan) on 05-02-2018 under an invoice of the same date.Using the information given below, compute the value of the machineand the GST payable (cGST & scsr or IGST as the case may be) incash for the month of February , 2org by IWs Jonty India Ltd. withappropriate working notes.

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(2)

PMTS MarksAssume Rate of ccsr, SGST and IGST on the machine to be 9vo,9To

and lSVo respectively.

sl.

No.

Particulars Amount in(

(i) The Basic price of the machine (exclusive oftaxes and discount).

28,50,000

(ii) Trade discount is allowed at 3Vo on the basic

price and is shown in the invoice.

85,500

(iii) Secondary packing (in iron sheets) charges forsafe transportation of the machine on the

request ofbuyer. /

30,000

(iv) Design and engineering charges of the

machine. /90,000

(v) Tax levied by Municipal Authority on the sale

of the machine. ,.

25,000

(vi) Subsidy received by the supplier from the

State Government to encourage manufacfure

80,000

(vii) Pre-delivery inspection charges paid to an

independent agency in terms of the agreement

for supply. The amount was paid Wlvl/s. Dhanuka Ltd. A

22,A00

(viii) Interest amount paid by IWs Dhanuka Ltd. fordelay in payment for the machine. f

12,000

Inward Supplies

(i) IGST paid on food items for consumption by 8,000

(ii) SGST and CGST (( 15,000 each) paid on

Electrical transformer used in the

manufacturing process. J

30,000

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(3)

PMTS MarksNote : (, IWs Jonty India Ltd. has no input tax credit balance at

the beginning of February, 2018. All the other

conditions necessary for availing the eligibte input tax

credit have been fulfilled.

(ii) There are no other transactions of supplies during the

month of February, 2018.

(iii) IWs Jonty India Ltd. and IWs. Dhanuka Ltd.

related persons.

(b) chiku Traders is a registered ,unoti,i, of plastic goods. on 10e April,

2018, chiku Traders received an order from Neelu Traders for supply

of a consignment of plastic goods. Chiku Traders gets the consignment

ready by 15e April, 2018. The invoice for the consignment was issued

the next day, 15s April, 2018. Neelu Traders collects the consignment

from the godown of chiku Traders on 25fr April, 201g and hands over

the cheque towards payment on the same date. The said payment is

entered in the books of accounts of chiku Traders on26hApril, 201g

and amount is credited in their bank account on2rhApril, 201g.

Determine trre [m9-g{. :g3}.jj,f. _9j:1,-Lg'-9oj|, supplied by chiku

Traders to Neelu Traders as per the provisions of ccsr Act, z)ri. .

(c) Jolly overseas Ltd. of Hyderabad has imported a machine from u.K 5

(Engtand) through the sea route by a vessel. The details of the import

transaction are as follows :

are notcG-/

5

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"sl.

No.

Particulars Amount

in UK ($)

(i) Cost of the machine at the factory of the exporter 20,000

(ii) Transport charges from the factory of exporter

to the port for shipment /600

(iii) Handling charges paid for loading the machine

on the ship at the port of exportation ,-

500

(iv) License fee relating to the imported goods

payable by the importer as a condition of sale<

900

(v) Actual Freight charges from thep,ort of export

to the port of import are not ascertainable

(vi) Actual insurance charges paid 200(vii) Landing charges paid at the place of

imponation are not ascertainable

(4)

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(i) | Handling charges assoc

of the imported goods at the place ofimportation

ll

1 Bill of entry :. Dated 21.01.2018

Exchange rate on that day :-

(a) Notified by CBEC I UK f = ( t}t -t(b ) prescribed by RBI 1 UKf = ? 100

2 Entry

inward :.

Dated 26.01.201E

Exchange rate on that day :-

(a) Notified by CBEC I UK f = ( 102 -t(b) prescribed by RBI I UK g = ? 103

Compute the assessable value of the machi@epurpose of levy of Customs Duty.

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(s)

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(a) PQR Company Ltd., a registeqed supplier of Bengaluru (Karnataka), is

a manufacturer of goods. The company provides the following

information pertaining to GST paid on input supplies during the month

Other Information :-

(0 In the month of September, 2017, PQR Company Ltd. availed'

input tax credit of <Jr49,000-on purchase of rarr material which

was directly sent to jo! worker's premi-ses under a challan on

25-Og-20t7. The said raw material has not been receiu.O Uu.l

from the Job worker up to 30-04-2018.

(ii) Alt the above input supplies except (iii) above have been used in

the manufacmrlg$*.bb g*qr.PMTS

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7

of April,2018:

Life Insurance premium paid by the company

on the life of factory emplovees as per the

policy of the company.

Raw materials purchased for which invoice is

missing but delivery challan is available.

Raw materials purchased which are used for

zero rated outward supply.

Works conffactor'.s seryice used for repair of

factory building which is deUitea in the profit

and loss account of company.

Company purchased the capital goods for( 4,00,000 and claimed depreciation of

< 44,800 (@ l0 Vo) on the full amount of( 4,48,000 under Income Tax Act, 1961.

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Compute the amount of net Input Tax Credit available for the month ofApril, 2018 with necessary explanations for your conclusion for each

item. You may assume that all the other conditions necessary foravailing the eligible input tax credits have been fulfilled.

(b) Mr. Mahendra Sharma, an interior decorator registered at Ahmedabad

(Gujarat), provided service to one of his clients xyz company Ltd.,

registered at Pune .(Maharashtra). The provision of -se.rvice was

@ and payment received was entered in the

books of Mr. Mahendra Sharma or.ll j!:?Ql.L

With effect from 16/08t2018, applicable GST rate was increased from

5J to lg.However payment for the service received was credited in

his bank account on 1710812018 and invoice for the" same was raised

on 23-08-2018.

. Mr. Mahendra sharma claimed that he is tiable to pay IGsr @ svo.' But the department took the view that he is liable to pay IGsr @rzvo.

Examine the correctness of Mr. Matrendra Sharma's contentiod and

determine the time of supply and applicable rate of tax as per.the

statutory provisions.

would your answer undergo any change in the above case if the

payment was credited to the bank account on 14-08-2018 instead of17-08-2018 ?

Note : You may assume that all days are working days.

(c) M/s Heeralal and Sons registered in Karnataka has opted to avail ttrebenefit of composition scheme, It has furnished the following details

for the tax period ended on 30-06-201g.

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Taxable turnover of goods *itfrin tfr" ,t*t"Exempted turnoverorgffiTotal Turnover

(7)

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using the above information, calculate total Gsr (No need forbifurcation between CGST and sGST) to be paid by the firm for thetax period ended on 30-06-201g in following independent situations :

(d) who can suspend/cancel the warehouse ricence and on what grounds ?what is the effect of suspension or cancellation on the warehouse andthe goods in the warehouse ? Explain in brief with reference toprovisions relating to cancellation of licence of Warehouse undersection 58B of the Customs Act, 1962,.

OR(e) lvith regard to the powers of the customs officers to draw samples

under section r44 0f the customs Act, lg62,indicateI. The purposes for which samples can be drawn;'II.

When can the samples be drawn;

m. The provisions for disposal of the sampres after the purpose isover.

(a) Pari t td. of Jodhpur (Rajasthan) is a registered manufacturer ofcosmetic'products. Pari Ltd. has furnished following details for themonth of April, 20lg :

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10

(0 IWs Heeralal and Sons is a Manufacturer.

(ii) IWs Heeralal and Sons is a Trader.

Answer either (d) or (e) only. Both need not be answered.

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S. No. Items ?

-

15,00,000(i)

(ii)17,00,000

32,00,000

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S. No. Particulars(A) Receipts'

Details of Sales

(i) Sales in Rajasthan 8,75,000(ii) Sales in States other than Rajasthan 3,75,000(iii) Export un4er bond 6,25,000

(B) Payments(1) Raw materials

(i) Purchased form registered suppliers located inRajasthan

L,06,250

(ii) Purchased from unregistered suppliers locatedin Rajasthan

37,500

(iii) Purchased from Punjabfrom regisfered supplier. 1,00,000

Gy) Integrated tax paid on Imporr from USA 22,732(2) Consumables purchased from registered suppliers

Iocated in Rajasthan including high speed diesel(Excise and Vat paid) worrh ( 31,250 for runningthe machinery in the factory.

1,56,250

(3) Monthly rent for the factory building to the ownerin Rajasthan.

1,00,000

(4) Salary paid to employees on rolls * 6,25,0A0(s) Premium paid on life insurance policies taken for

specified employees. Life insurance policies forspecified employees have been taken by pari Ltd.to fuIfil a statutory obligation in this regard. TheGovernment has notified such life insuranceservice under section 17(5)(b)(iiixA). The lifeinsurance service piovider is registered inRajasthan.

2,00,000

All the above amounts are exclusive of all kinds of taxes, whereverapplicable. However, the applicable taxes have also been paid by pari Ltd.The balance of Input Tax Credit (ITC) with pari Ltd. as on 1't epril,2018 is

sss; I?3,3ffiIGST t 15,000

(8)

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(b)

(e)

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Assume CGST, SGST and IGST rates to be 9Vo, 9Vo and l|%o

respectively, wherever applicable.

Assume that alt the other necessary conditions to avail the eligible

input tax credit have been complied with by pari Ltd., wherever

applicable

Compute eligible input tax-credit and net gsr payalll (GGST and

scsr or IGST as the case may be) by Pari Ltd. for the month of April,

2018.

On 25ft August, zOLl,lWs Agarwal & Agarwal Ltd., a registered

supplier of textile products located in Bengaluru (Karnataka)

purchased one machine for < 12,39,000 including IGST, from one

supplier of Maharashtra who . issued invoice on the same date.

IWs Agarwal & Agarwal Ltd. put the machinery to use on the same

day and availed input tax credit for the eligible amount.

lws Agarwal & Agarwal Ltd. sold this machine after using the

machine in the process of manufacture of taxable soods,for ? 7,50,000

excluding IGsr, to Mr. suresh Kumar of Andhra pradesh on 20ft

August 2018.

During purchase as well as sale of the machinery, the IGST rate

applicable was 187o.

Is IWs Agarwal & Agarwal Ltd., required to pay GST ? If yes,

calculate the amount of tax payable under GST Laws at the time ofsale of the machine. Also briefly state the relevant statutory provisions.

Note : Assume that there was no change in legal position after August,

2017.

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(10)

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(c) The Settlement Commission settled a case relating to -recovery of 5

drawback. The Customs department contends that the recovery of duty-:==:drawback does not involve levy, assessment and collection of customs

duty as envisaged under section 127 A (b) of the Customs Act, 1962.

Therefore Settlement Commission does not have jurisdiction to settle

the case.

Discuss with the help of the decided case law, if any, whether the

Settlement Commission have jurisdiction to settle cases relating to the

recovery of drawback eroneously paid by the Revenue ?

4. (ul Happy Ltd. located at Alwar (Rajasthan), exclusively manufactures

and sells the product "Shine & Shine", which is exempt from GST.

Happy Ltd. sells "Shine & Shine" only within Rajasthan. The turnover

of Happy Ltd. in the previous year was ( 60 lakhs. Happy Ltd.

purchased additional machinery (Capital Goods) for manufacturing

"Shine & Shine" on 1$ April, 2018. The rnvoice for supply of

g39fueqLds.o. was issued on 1't April, 2018. The purchase price of

the machinery was { 25 lakh exclusive of CGST and SGST @ l27o

(6?o + 6Vo). On 18t December, 2018 exemption available on the product

Shine & Shine" was withdrawn by the Central Government and

CGST and SGST @ L87o (97o + 97o) was imposed thereon. The

turnover.of Happy Ltd. on 30m September, 2018 was ( 45 lakh.

Examine the issue and provide the answers (with supporting

explanatory note for each answer) to the following :

I

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(1 1)

PMTS Marks(i) Does Happy Ltd. have to register under cGsT Act, z0l7 ?

(ii) can Happy Ltd. take credit of tax paid on the machinery

. purchased ? If yes, what is the amount of Input T* credit (ITC)

that can be availed ?

(b) Divy Trader obtained permission for provisional assessment and

supplied three consignments of furniture on 2g6 April, 201g. The tax

payment on provisional basis was made in respect of all the three

consignments on 20fr May, 201g.

consequent to the final assessment order passed by the Assistant

commissioner on 21st June, 2olg, a tzx of ( 1,20,000 and ( 1,50,000

became refrrndable on 1st and 3rd consignments, whereas a tax of( 1,20,000 became due on 2nd consignment. Divy Trader appries for

the refund of the ta:r on 1't and 3'd consignments on l2m July, 201g and

pays the tax due on 2od consignment on the same day. Tax was actually

refunded to it of l.t consignment on gth september, 201g, whereas of3d consignment on 18ft september, 201g. customers of Divy Trader

who purchased the consignments have not taken Input Tax credit (ITC).

Determine the interest payable and receivable, if any, under GGST' Act,2017 by Divy Trader.

I

t

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(c) Rule 112 ofthe CGST Rules lays down that the appellant shall not be 5

allowed to produce before the Appellate authority (AA) or the

Tribunal any evidence, whether oral or documentary, other than the

evidence produced by him during the course of the proceedings before

the adjudicating authority or, as the case may be, the AA'

What are the exceptional circumstances specified in the rule where the

production of additional evidence will be allowed ? Can AA or the

Tribunal direct production of any document or examination of any

witness ?

(d) Payal company, a unit located in Agri Export zone has made exports 5

of machineries worth US $ 30 lakh per annum (on an average) during

the last three years and in the current year. It wants to export certain

goods for expon promotion on free of cost basis, which are worth ( 25

lakh. 1 US $ = ( 50. Examine whether Payal Company can export,

export promotion goods on free of cost basis as proposed ?

(a) Mr. Sanjay of New Delhi made a request for a Motor cab to

"Super ride" for travelling from New Delhi to Gurgaon (Haryana)'

After Mr. Sanjay pays the cab charges using his debit card, he gets

details of the driver Mr. Jorawar singh and the cab's registration

number.

l'Super ride" is a mobile application owned and managed by D'T'

Ltd. located in India. The application "Super rideD faciiitates a

potential customer to connect with the persons providing cab service

under the brand name of "Super ride".

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(13)

PMTS MarksD.T. Ltd. claims that cab service is provided by Mr. Jorawar singh and

hence, he is liable to pay GST under the provisions of Goods and

Service tax laws.

with reference to the provisions of IGST Act,2017, determine who is

liable to pay GST in this case.?

would ydur answer be different,'if D,T. Ltd. is located in New york

(USA) ? Also briefly state the statutory provisions involved.

(b) Mr. Anant Kumar Gupta self-assessed his ,* tiuuitiry as ( 90,000 for

the month of April2018 but taiteO to make the payment.

Subsequently the b"purtrn.rt initiated penal proceedings against

Mr. Anant Kumar Gupta for recovery of penalty under section 73 ofccsr Act,2or7 for failure to pay GST and issued show cause notice

on 10-08-2018 which was received by Mr. Anant Kumar Gupta on

14-08-2018.

Mr. Anant Kumar Gupta deposited rhe tax along with

interest on 2510812018 and informed the department on the same

day.

Department is contending that he is liable to pay a penalty of ( 45,000

(i.e.50Vo of 90000).

Examine the correctness of the stand taken by the Department with

reference to the provisions of the ccsr Act, 2017, explain the

relevant provisions in brief.

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(14)

PMTS Marks(c) Miss Nitya has following balances in her Electronic Cash Ledger as on 5

28102t2018 as per GST portal.

Major Heads Minor Heads Amount (? )

CGST

Tax 40,000

Interest 1,000

Penalty 800

SGST

Tax 80,000

Interest 400

Penalty l,2NFee 2,000

IGST

Tax 45,000

Interest 200

Penalty NitHer tax liabiliry for the

was ( 75;000 each. she failed to pay the tax and contacted you as legaladvisor on l2l%l2018 to advise her as to how much amount of tax orinterest she is required to pay, if any, by utilizing the available balance

to the maximum extent possible as pei GST Laws. she wants to paythe tax on20-04-2018.

Other Information :-

(0 Date of collection of GST was 1ge February, 201g.

(ii) No other transaction after this up ro 20th April zolg.(iii) Ignore penalty for this rransaction.

(iv) No other balance is available.

You are required to advise her with reference to legal provisions withbrief notes on the legal provisions applicable.

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(1s)

PMTS Marks(d) In an order issued to SC Ltd., the adjudicating authority has confirmed 5

a duty demand of ( 50 lakhs and imposed a penalty of equal amount

under section 114A of the customs Act, 1962. plus a penalty of

t 1 lakh under section 117 of the customs Act, rglz.Their appeal to

commissioner (Appeals), challenging the duty demand and imposition

- of penalty after payment of required pre-deposit was dismissed. Now,

they wish to file an appeal before CESTAT.

Indicate the amount they paid when they filed appeal before the

commissioner (Appeals) and,they are required to pay towards pre

deposit for filing the appeal under section l2g} of the customs Act,

lg1lbeforethe customs, Excise, and service Tax Appellate Tribunal :

(a) if they dispute their liability to pay dury and penalties;

(b) if they accept the dury liability but dispute the imposition of

penalties.

Briefly explain the legal provisions relating to pre-deposit for appeals

before first appetlate authority and CESTAT.

6. (a) Briefly explain the procedure to be followed by the Authority for

Advance Ruling on receipt of the application for Advance Ruling

under section 98 of CGST Act,20l7

O) What are the duties of National Anti-profiteering Authority

enumerated in the CGST Act ?

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(16)

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(c) Explain the difference between Audit by Tax Authorities under section s65 and Special Audit under section 66 of the CGST Act,20l7.

(d) In lanuary, 2018, Rock & Rock India Ltd. imported a consignment 5

from U.S.A (by sea). The value of consignment was ( 7,50,@0 and

total duty pay4ble was ( 1,50,000.

Company filed bill of entry for home consumption but before

inspection and clearance for home consumption it found that the goods

were damaged.

On filing a representation to the Customs Department, proper officer

refused the claim for abatement because goods were already unloaded.

The proper officer is in agreement with the claim that the value of

goods has come down to only { 1,50,000.

Examine the issue with reference to the relevant statutory provisions

and calculate the amount of total duty payable :

Would yor, *r*er be different in the above case if the goods get

deteriorated after unloading and examination but before clearance for

home consumption, and value comes do*n to ( 7,00,000 ?

- I

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